Steve goes to Tri-State University and pays $40,000 in tuition. Steve works a part-time job to pay for his schooling and has an AGI of $17,000 . How much is his American Opportunity tax credit?

a. $2,000
b. $2,500
c. $4,000
d. $1,000
e. He does not qualify for the American Opportunity tax credit.

b